Purpose – In an effort to build a useful conceptual framework that enhances understanding and permits practical application of Ethics, this paper is meant to understand the relationship and impact of Islamic Marketing Ethics on Brand Credibility. Nowadays, recognizing the ethical dilemmas associated with business is an important aspect of marketing strategy (Murphy, Laczniak, and Prothero, 2012). As known, the pharmaceutical industry has access to a deep pool of resources with the potential to maintain an esteemed reputation for offering innovative products that improve the public’s health and well-being (Kim and Ball, 2013). However, recent years have yielded several high profile safety issues associated with particular medications along with a growing perception that pharmaceutical companies are unethical and drive up healthcare costs by prioritizing profits over consumer needs (USA Today/KFF/Harvard SPH 2008). As a result, the reputation of the pharmaceutical industry has been damaged with only eleven percent (11%) of individuals considering pharmaceutical companies to be trustworthy (Harris Interactive Poll 2010). Thus, Pharmaceutical Industry in Yemen was the target of this paper and the relationship between its Brands’ Credibility and Islamic Marketing Ethics was highlighted.
Design/methodology/approach – In a study of one hundred and six (106) respondents, exploratory and confirmatory factor analysis were conducted in order to understand the relationship, between Brand Credibility and Islamic Marketing Ethics. Correlation and regression analysis were performed to evaluate the hypothesized relationships between the variables.
Findings – Significant and positive relationships were confirmed between Brand Credibility and Islamic Marketing Ethics namely, Annasihah, Al-Istiqamah, Al-E’etedal, Al-Ihsan, As-Sidq, Attaqwa, and Al-Amanah. The eighth Islamic marketing ethic, Attasamoh, has been rejected.
Originality/value – The paper evaluates Brand Credibility in relation to Islamic Marketing Ethics in the Pharmaceutical Industry in Yemen. Islamic marketing ethics have been confirmed as a new variable correlates with Brand Credibility and helps boosting the level of credibility.
In the early years of the last century, many of western corporations have followed several marketing techniques to make their products, services and brands the most actively traded in the market and among customers (Lamb, Hair, and McDaniel, 2008).
Many of those corporations have spread their brands and products all over the globe and they could gain customers’ trust and loyalty (Brandi, 2001). As a result, they could build their brands’ credibility which is known as the amount of trustworthiness or expertise that a company has in the eyes of its clients, customers, business partners, and financial resources (Donovan, 2011).
In order to accomplish that level of success, western societies have created their own ethical marketing standards and policies which they are governed by (Vogel, 2006). Those standards and policies drew their intellectual root from laws, cultures, and families’ values and, in many cases, from historical references (Lamb et al., 2010).
Recently, world’s top brands used the inner emotion as a key driver for their brands’ strategies which refers to adopt an emotional theme for their brands which in fact improves the self-image feelings of their customers; but at the same time; they assured the high extent of credibility of those themes. This is because, if they do not, they will lose their bands’ image for ever. Ethics is not the only driver to boost the credibility of the brand but it is the most important one and without adopting ethics, firms cannot compete and have a position between worlds’ top brands (Tempora, 2011).
Although, the flaws those standards have had; they have applied them in their personal and business lives, and they abided them (Ferrell, Fraedrich, and Ferrell, 2011). As known that most of western societies have embraced secularism as a way of life which is defined as “the principle of separation of government institutions, and the persons mandated to represent the State, from religious institutions and religious dignitaries. In one sense, secularism may assert the right to be free from religious rule and teachings, and the right to freedom from governmental imposition of religion upon the people within a state that is neutral on matters of belief (Kosmin and Keysar, 2007).